Inverted Hammer

Formation
They typically appear at the end of a down trend. They have a small real body at the lower end of the candle. The body may be black or white. They have a long upper wick which is double the height of the real body. The lower wick may be absent or very short.

Importance
It is a minor bullish reversal pattern. Next day's price movement confirms whether the trend is reversed or continuing. The confirmation may be in the form of a long white candle with a gap up real body.

Study the chart given below.